Required: a. Complete the income statements for both divisions and the corporation as a whole. (Enter all values as positive value. Round your answers to 1 decimal place.) Mountain Division Valley Division Corporate Sales Cost of sales Gross margin SG&A Allocated corporate costs Operating income Tax expense (@25%) After-tax income 18.0 72.0 134.4 Gross margin percentage Operating margin Profit margin 66.00 % 26.00 % 52.50 % 21.20 % 56.00 % 22.40 % 16.80 % 19.50 % 15.90 %

Required: a. Complete the income statements for both divisions and the corporation as a whole. (Enter all values as positive value. Round your answers to 1 decimal place.) Mountain Division Valley Division Corporate Sales Cost of sales Gross margin SG&A Allocated corporate costs Operating income Tax expense (@25%) After-tax income 18.0 72.0 134.4 Gross margin percentage Operating margin Profit margin 66.00 % 26.00 % 52.50 % 21.20 % 56.00 % 22.40 % 16.80 % 19.50 % 15.90 %

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 9SPA: INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood...

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